Outer Boroughs Dominate City's Multifamily Sales Market

Shimon Shkury, president, Ariel Property Advisors

NEW YORK CITY—Led by strong activity in Brooklyn, Queens and Northern Manhattan, the outer boroughs easily bested Manhattan in multifamily investment sales this past June. According to a report released today by brokerage firm Ariel Property Advisors, the five boroughs of New York City saw 67 sales transactions in June involving 106 buildings that totaled a little more than $1 billion in total consideration. The New York City multifamily market maintained strong dollar volume levels, albeit with fewer sales transactions. This continues a trend  the market has seen throughout 2016, Ariel reports. The dollar volume was 8% higher than June 2015, although sales activity was down 9% and building volume was 28% lower than a year earlier when the city posted $934 million in gross consideration across 74 transactions comprised of 148 buildings. Compared to May 2016, dollar volume in June was down 18%, transaction volume was up 3% and building volume was relatively flat, down 1%. The total number of units involved in the transactions in June totaled 3,680, which was flat as compared to a year earlier (3,695 units) and 16% higher than the 3,184 units in May 2016. The report, authored by president of Ariel Property Advisors Shimon Shkury, notes that Brooklyn led the way in June with $302 million in multifamily sales dollar volume. A major deal in June was the $49.55-million purchase of the Bergan Gardens multifamily complex, a portfolio of six walk-up buildings on the border of Bergen Beach and Flatlands. The Hudson Companies reportedly acquired the complex. The borough of Queens enjoyed an extremely active month in June paced by Related Cos.’ purchase of a 444-unit Section 8 multifamily portfolio in Astoria for $121 million, or $363-per-square foot. Another significant deal in Queens was A&E Real Estate’s acquisition of the 324-unit La Mesa Verde Apartments in Jackson Heights for $72.1 million or $376-a-square-foot. Manhattan real estate brokers were not very busy in June, registering just 10 transactions across 16 buildings, totaling $142 million in gross consideration. In June, the Northern Manhattan submarket was paced by the sale of the 236-unit, elevatored mixed-use building at 1951-1965 1st Ave. for $103 million, or $412-per-square-foot. Overall, Northern Manhattan had another strong month. The submarket posted 16 buildings trades across 13 transactions, totaling $259 million in gross consideration.